CODE OF VIRGINIA

INSOLVENCY DEPOSIT ASSESSMENT (§ 38.2-4317.1)

In the event of an insolvency of a health maintenance organization occurring
after July 1, 1989, the Commission may, (i) in the absence of an assumption
under subsection C of § 38.2-4317 that is satisfactory to the Commission and
that occurred within sixty days after entry of an order of impairment or
insolvency and (ii) after notice and hearing, levy an assessment on premiums due
by licensed health maintenance organizations on contracts issued or renewed in
this Commonwealth after the date of such assessment; provided, that such
assessments for all health maintenance organization insolvencies in any calendar
year shall not exceed two percent of the premiums subject to such assessments.
Such assessments shall be paid quarterly to the Commission, and upon receipt by
the Commission shall be paid over into the deposit account of the insolvent
health maintenance organization held pursuant to subsection A of § 38.2-4310
for the benefit of enrollees for use and disbursement in accordance with this
section, § 38.2-4317, and applicable Commission regulations. No participating
provider, as defined in § 38.2-4300, may, either directly or indirectly,
receive reimbursement from any such assessments. A receiver of such an insolvent
health maintenance organization appointed pursuant to § 38.2-4317 may borrow in
anticipation of collection of such assessments to meet obligations under a
deposit account. Any assessments levied on account of a health maintenance
organization insolvency in excess of obligations to enrollees shall be ratably
returned to the health maintenance organizations paying such assessments.

HISTORY: 1989, c. 216; 1990, c. 224; 2000, c. 503.